Firefighters work to contain wildfires near Eaton Canyon in California on Thursday, January 9, 2025. Photo: Amanda Bronstad/ALM.
Allstate’s predicted $1.1 billion in losses related to the LA County wildfires reflects a comprehensive reinsurance program and a company decision to reduce market share beginning in 2007, the insurer said in a recent earnings statement.
The carrier also reported $16.5 billion in total revenues for the fourth quarter of 2024 to notch an 11.3% increase from prior year quarter, and $64.1 billion in total revenues for the year to notch a 12.3% increase from 2023.
“This performance reflects successful risk and return management,” said Allstate President and CEO Tom Wilson.
“Progress was also made in executing the strategy to grow personal Property-Liability market share,” he added. “The underwriting expense ratio has been reduced, new affordable, simple and connected products brought to market and distribution significantly expanded in the direct and independent agent channels. Total Property-Liability policies in force are expected to grow in 2025 as auto insurance policy renewal rates improve and new business continues to increase.”
For company investors, Allstate reported $4.6 billion in net income applicable to common shareholders for 2024 compared to a loss in 2023. Despite a December slump, Allstate shares closed 2024 up roughly 37%.
Meanwhile, homeowners' insurance generated $1.3 billion of underwriting income for Allstate in 2024 and covered $3.7 billion of customers’ catastrophe losses.
In January 2025, a quarter million Allstate customers in Illinois were told they will pay at least 14% more for homeowners' insurance this winter. The new rates will take effect on Feb. 24, 2025, and impact roughly 250,000 customers. The new price hike comes after a 12% raise in 2024.
In November 2024, Allstate hit California homeowners with 34.1% rate hike. The increase was approved by the California Department of Insurance and impacted roughly 350,000 policyholders statewide, just two months before the wildfires.
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